INTM501020 – Intra-group funding: legislation and case law

The application of Schedule 28AA to intra-group funding

ICTA88/SCH28AA applies to accounting periods ending on or after 1 July 1999 and years of assessment from 1999/00. It is more widely drawn than the legislation it replaces, ICTA88/S770.

Under the 'old code', ICTA88/S773(4) was interpreted as extending the meaning of "transaction" to include, amongst other things, outward loans to parties such as overseas subsidiaries and other members of a worldwide group, where the relationship was not at arm's length. See INTM501040 for details of ICTA88/S773(4).

The scope of ICTA88/SCH28AA is considered in detail at INTM432010 and for transactions on or after 1 April 2004 at INTM560000 onwards.